Edex International Holdings Pty. Ltd. v Marmalade Films Pty. Ltd

Edex International Holdings Pty. Ltd. (the claimant) appealed to the New South Wales Court of Appeal against a decision concerning a commercial lease dispute with Marmalade Films Pty. Ltd. (the opponent). The core of the dispute involved the opponent's claim for an abatement of rent due to rising damp affecting the leased premises, and the claimant's counter-claim for unpaid rent and outgoings.

The Court of Appeal was required to determine whether rising damp constituted "damage" for the purposes of rent abatement under the lease. Further issues included whether the tenant was obliged to provide notice of its claim for abatement, and whether abatement could be sought in respect of rent that had already been paid.

The Court found that rising damp could indeed constitute damage within the meaning of the lease. However, it also determined that the tenant had not provided the requisite notice of its claim for abatement, and that abatement could not be claimed for rent already paid. Consequently, the appeal was allowed in part, with the judgment below being varied to reflect a sum of $44,460.00, and otherwise dismissed. The opponent was ordered to pay the claimant's costs of the application for leave and the appeal.